See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated March 28, 2026
Homebuyer Programs in Franklin, TN (2026)
Franklin, the Williamson County seat located just south of Nashville, is one of Tennessee's most desirable and expensive housing markets with a median home price around $830,000. While Franklin does not currently offer a city-funded down payment assistance program, buyers can take advantage of several state and nonprofit programs. The THDA Great Choice Plus program provides up to $6,000 as a forgivable second mortgage or up to $15,000 as a repayable loan, though THDA purchase price limits may restrict eligibility for higher-priced homes. The Housing Fund offers loans up to $35,000 for down payment and closing costs to Williamson County buyers earning up to 120% AMI. Habitat for Humanity Williamson-Maury builds affordable homes in the area for qualifying families. Veterans and first responders can benefit from the THDA Homeownership for Heroes program with a 0.5% reduced interest rate.
State Programs in Tennessee
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| THDA Great Choice Home Loan | Government-Insured Mortgage | 30-year fixed-rate first mortgage used with FHA, VA, USDA-RD or conventional financing (up to 96.5% financing on FHA, 100% on VA/USDA-RD); optional Great Choice Plus DPA of 5% of price up to $15,000 (amortizing) or $6,000/$10,000 (deferred, forgivable after 10 years) | Yes | View → |
| THDA Great Choice Plus - Amortizing Option | Repayable Loan | Up to 5% of the purchase price, maximum $15,000 | Yes | View → |
| THDA Great Choice Plus - Deferred Option | Forgivable Loan | $6,000 forgivable second mortgage | Yes | View → |
| THDA Homeownership for Heroes | Government-Insured Mortgage | 0.50% interest rate reduction on a THDA Great Choice Home Loan (FHA, VA or USDA-RD only); optional Great Choice Plus DPA of up to 5% of price (max $15,000) amortizing, or $6,000/$10,000 deferred and forgivable | Yes | View → |
- Type:
- Government-Insured Mortgage
- Amount:
- 30-year fixed-rate first mortgage used with FHA, VA, USDA-RD or conventional financing (up to 96.5% financing on FHA, 100% on VA/USDA-RD); optional Great Choice Plus DPA of 5% of price up to $15,000 (amortizing) or $6,000/$10,000 (deferred, forgivable after 10 years)
- First-time only:
- Yes
- Type:
- Repayable Loan
- Amount:
- Up to 5% of the purchase price, maximum $15,000
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- $6,000 forgivable second mortgage
- First-time only:
- Yes
- Type:
- Government-Insured Mortgage
- Amount:
- 0.50% interest rate reduction on a THDA Great Choice Home Loan (FHA, VA or USDA-RD only); optional Great Choice Plus DPA of up to 5% of price (max $15,000) amortizing, or $6,000/$10,000 deferred and forgivable
- First-time only:
- Yes
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- Type:
- Government-Insured Mortgage
- Amount:
- Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- FHA-Financed HUD REO Purchase
- Amount:
- Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
- First-time only:
- No
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Habitat for Humanity Williamson-Maury Homeownership Program | Zero-Interest Loan | Affordable home purchase with below-market mortgage | Yes | View → |
| The Housing Fund Down Payment Assistance | Repayable Loan | Up to $35,000 | Yes | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home purchase with below-market mortgage
- First-time only:
- Yes
- Type:
- Repayable Loan
- Amount:
- Up to $35,000
- First-time only:
- Yes
How to Apply
Step 1: Check your eligibility. THDA programs have county-specific income and purchase price limits for Williamson County. Given Franklin's high home prices, verify that your target home falls within THDA limits at GreatChoiceTN.com. The Housing Fund serves buyers up to 120% AMI.
Step 2: Complete homebuyer education. All THDA programs require completion of a homebuyer education course from a THDA-certified counselor. The Housing Fund also requires THDA-certified education prior to closing.
Step 3: Get pre-approved for a mortgage. Contact a THDA-approved lender to apply for a Great Choice Home Loan with down payment assistance. A minimum credit score of 640 is required for THDA programs.
Step 4: Apply for The Housing Fund DPA. Contact The Housing Fund at 615-780-7000 for loans up to $35,000 for down payment, prepaids, and closing costs. Your first-mortgage lender must be FHA-approved in Tennessee. Minimum credit score is 600 for loans under $10,000 or 620 for loans up to $35,000.
Step 5: Explore Habitat for Humanity Williamson-Maury. For lower-income families, Habitat builds affordable homes in Williamson County. Contact them at (615) 690-8094 or visit their office at 1725 Columbia Ave, Suite 110, Franklin, TN 37064.
Step 6: Find a home within program limits and close. Work with your real estate agent to find a home that meets applicable program price limits. Note that Franklin's high median price may exceed some program caps.
Frequently Asked Questions
How much down payment assistance can I get in Franklin?+−
Do I have to be a first-time homebuyer to qualify?+−
Are there city-funded programs in Franklin?+−
What is the maximum home price I can pay with THDA assistance?+−
What homebuyer education is required?+−
Are there programs for veterans in Franklin?+−
Free eligibility check
Buying a home in Franklin? 13 programs could help.
How soon are you looking to buy?